The COVID-19 pandemic disrupted not only the everyday lives of people but the conduct of business as well. Many operations came to a halt because of shutdowns and lockdowns, although windows of opportunities opened for some companies. While the TSX experienced a market selloff in March 2020, recovery did not take long.
The health crisis somehow made it easier to find businesses with massive upside potentials. Companies such as AcuityAds Holdings (TSX:AT)(NASDAQ:ATY) and Payfare (TSX:PAY) are suddenly in the limelight. Both are among the TSX’s high-growth stocks in 2021. Seriously consider buying them today if you want superior returns in the near future.
Powerful digital marketing tool
Acuity Ads’s investors are more than pleased with the stock’s performance and one-year price return of 332%. Those who’d invested $5,000 on September 3, 2021, are richer by $16,612.90 today. However, at the current price of $10.72 per share, the stock trades at a discount (-25% year to date).
Nonetheless, market analysts recommend a strong buy rating and forecast AcuityAds to climb 88% to $20.19, at least, in the next 12 months. The $647.86 million company from Toronto is well- positioned to rule in the omnichannel digital advertising industry.
Illumin, AcuityAds’s journey automation technology, offers one platform for planning, buying, and real-time intelligence. The intuitive platform boasts proprietary artificial intelligence and brings with it unique programming capabilities. Digital advertising has never been this powerful and cost friendly.
In Q1 2021, total revenue grew 55% to $30.3 million versus Q2 2021. The net income was $3.34 million compared to the 1.6 million in the same period last year. In the six months ended June 20, 2021, the top and bottom lines reached $7.73 million and $4.7 million, respectively. Notably, the U.S. market contributed the most to revenue.
Management expects to end 2021 with significant increases in revenue, adjusted EBITDA, and net income compared to 2020. However, they acknowledge that the global pandemic would still create short-term uncertainty.
Payfare is a neophyte trying to get its feet wet on the stock market. However, the fintech stock has delivered 88% since its market debut on March 19, 2021. From $6 on the first trading, it trades at $11.25 as of September 3, 2021. Market analysts are bullish and see a potential climb to $14 (+33%) in the next 12 months.
Millennials especially can relate to the business of this $511.98 million tech startup from Vancouver. Payfare caters to the gig economy, whether it be for workers and platforms. Gig workers gain instant access to earnings, while gig platforms and marketplaces find efficient worker payout solutions convenient.
The gig economy workforce or next-generation workers are growing worldwide. Gig platforms like Lyft, Uber, Uber Eats, and DoorDash are Payfare’s partners already. Payfare’s $8.7 million revenue in Q2 2021 is 263% higher than Q2 2020. Its active user count increased by a resounding 618% to 262,567.
Meanwhile, the company reported positive growth profit compared to its negative position in the same quarter last year. Marco Margiotta, Payfare’s CEO and founding partner, credits the key partnerships and increasing global reach for the tremendous growth in Q2 2021. In the back half of 2021, Payfare will pursue expansion opportunities.
Budding tech superstars
I would say that AcuityAds and Payfare are prefect for the digital world and the post-pandemic environment. Initiate positions now, and don’t be left out when these budding tech superstars take flight.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends AcuityAds Holdings Inc. The Motley Fool recommends Uber Technologies.